Grand Banks Yachts

[lanoitar]

It looks like Grand Banks is attempting a hail mary:

http://infopub.sgx.com/FileOpen/Proposed...eID=254507

It has 3 more months to get out of SGX watchlist, or minimally, get an extension. Its just announced FY remains loss making, and its market cap is < S$40m. The coming rights issue appears to be addressing the latter criteria.

No shareholder has undertaken to subscribe. Caveat emptor.

[dydx]

The 1-for-2 rights issue which closed on 18Oct13 with a total subscription of 118.7% was over-subscribed by 18.7%, comprising 50.9% in valid acceptances and 67.8% in excess applications - i.e. quite many shareholders actually subscribed for more shares under excess applications which are bigger than their rights entitlements.....
http://infopub.sgx.com/FileOpen/Results_...eID=260834

Not a bad showing for a watch-listed counter!

[dydx]

After the successful completion of the recent 1-for-2 rights issue which involved the issue of 57,669,749 new rights shares at $0.22/shares, Tan Sri Lim Kok Thay has emerged as Grand Banks' largest shareholder holding 39,383,197 shares (or 22.76% of the total 173,009,249 issued shares) held under his family investment vehicle Exa Limited.....
http://infopub.sgx.com/FileOpen/TanSriLi...eID=261500

As Tan Sri Lim Kok Thay's stake in Grand Banks before the rights issue was only 17,185,585 shares (or 14.9%), he must have increased his stake by way of (1) buying 'nil-paid' rights from the open-market and subscribed for them, and/or (2) subscribing for a massive amount of shares under excess application.

[dydx]

1Q-FY14 (ending 30Jun14) results just out.....
http://infopub.sgx.com/FileOpen/GB1Q2014...eID=261530 [result announcement]
http://infopub.sgx.com/FileOpen/GB1Q2014...eID=261529 [press release]
http://infopub.sgx.com/FileOpen/Quarterl...eID=261531 [quarterly update]

Improving trend towards removal from the Watch-List in this FY14?

[MOV]

Before the rights issue, company is debt-free and has cash of more than $10 mil. Therefore I do not understand the intention behind the rights. Note that other parties including Livingston had chosen not to subscribe for the rights, resulting in dilution.

With 1 month before watch-list deadline, minority shareholders might end up with a delisted company with no guarantee of an exit offer.

(not vested)

[dydx]

Both the Senior and Junior Livingstons are no longer on the BOD, which is now controlled by the IDs of good repute and competence.

Now with Tan Sri Lim Kok Thay as the largest shareholder, and boat orders and operating losses showing further improvement, I guess SGX should be flexible to accede to Grand Banks' request for an extension of the deadline for removal from the Watch-List.

I think it is reasonable to expect that Tan Sri Lim Kok Thay will do more now to revive Grand Banks' fortune.

[dydx]

Senior Livingston is back on the BOD as a Non-Executive and Non-Independent Director.....
http://infopub.sgx.com/Apps?A=COW_Corpor...&F=1020501
With his vast experience in GB's business, this is a positive development.

[investwisely]

Lim's core business lies in casino. I doubt he is interested to put effort to revive GB, which is negligible compared to his core. Buying GB for Lim is like Saudi prince buying soccer clubs for entertainment purpose.

(not vested)

[Behappyalways]

http://www.businesstimes.com.sg/premium/...t-20131101

either the share price has to go up or they might need another right issue to push market cap to $40m.....


not vested......

[dydx]

Lim's core business lies in casino. I doubt he is interested to put effort to revive GB, which is negligible compared to his core. Buying GB for Lim is like Saudi prince buying soccer clubs for entertainment purpose.

(not vested)

A rich man's toy can be a good business - and may be a good investment opportunity as well - if it is well established and managed, and serves a global market on a profitable basis. But of course, in GB's case, the recovery of the business towards normal profitability has taken quite a long time, and will need a bit more time and quite a lot of effort still.